Mr Solomon Kotei
Mr Solomon Kotei

The Industrial and Commercial Workers Union (ICU) has called on the Public Utilities Regulatory Commission (PURC) to make the Automatic Tariff Adjustment Formula (AAF) known to the public.

Mr Solomon Kotei, ICU General Secretary, said when this is done it would enable the public to better appreciate it and accept the formula.

He said the AAF main objective is to review quarterly, electricity and water tariffs to reflect changes in factors which effect their operation.

Mr Kotei, speaking in an interview with Ghana News Agency on the proposed increment of utility tariffs, said in 2014 automatic tariff adjustment formula was introduced.

“PURC started the implementation of the AAF as a pricing mechanism based on the factors that reflect the actual cost of electricity and water supply,” he said.

He said an open understanding of the automatic adjustment formula operations; either its review upwards or downwards would enable the Union to speak clearly on the issue and identify the challenges with the formula should the need arise.

Mr Kotei said there have been periods, where increases were left for a long time before they were triggered, this leads to 70 per cent to 80 per cent increment, which has always resulted in labour agitation.

He said ICU is at a point, where they want to know the formula, which would enable them understand the process for the increment and reason as to why it should be high or low.

Mr Kotei said at a point, the government intervened and demanded from the PURC, a sharp reduction of 30 per cent to about 15 per cent.

The PURC in accordance with the Public Utilities Regulatory Commission Act, 1997 (Act 538), has initiated processes for the examination and approval of electricity and water tariffs for 2019 to 2023.

During the review process, the Commission will examine proposals submitted by the utility companies.

Mr Ishmael Agyakumhene, the PURC Technical Committee Chairman, said the Commission would meet to deliberate and consider service providers on the increase in tariffs.

The Commission has rollout stakeholder engagement mechanisms to consult utility service providers on the commencement date for the tariff review.

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